jeffemmett
/
web3
1
0
Fork 0
Code Issues Pull Requests Packages Projects Releases Wiki Activity

title change

This commit is contained in:
EilidhRoss1 2022-07-21 16:55:43 +01:00 committed by GitHub
parent f8bae969ea
commit c5bf8275a1
No known key found for this signature in database
GPG Key ID: 4AEE18F83AFDEB23
1 changed files with 3 additions and 4 deletions
Show Stats Download Patch File Download Diff File Expand all files Collapse all files

7
claims/is-legal.md
View File

@ -1,9 +1,8 @@
# Legality of crypto assets
# Are crypto assets legal?
The legality of buying these risky products depends on the jurisdiction of the buyer and seller.
Crypto assets are unlicensed [security](../concepts/security.md) contracts for unregulated [speculative](../concepts/speculation.md) investments. Crypto assets are effectively like buying unregulated penny stocks, except with no recourse to the courts in the case of the project being a [Ponzi scheme](../concepts/ponzi-scheme.md) or [exit scam](../concepts/exit-scam.md).
The legality of buying these risky products depends on the jurisdiction of the buyer and seller.
In the United States the sale of unregistered securities to the public is illegal. The legality of the purchase of of unregistered securities will depend on the facts and circumstances of the sale, but regardless of legality these type of extra-legal transactions expose the buyer to unnecessary [risk](../concepts/risk.md) compared to buying normal [financial assets](../concepts/financial-asset.md) within the regulatory perimeter. Buying crypto assets is thus legally inadvisable from both a risk and compliance perspective.
## References
@ -14,4 +13,4 @@ In the United States the sale of unregistered securities to the public is illega
1. Huang, Sherena Sheng. 2021. ‘Crypto Assets Regulation in the UK: An Assessment of the Regulatory Effectiveness and Consistency’. Journal of Financial Regulation and Compliance.
1. Rae, Shaela W, and Lorraine Mastersmith. 2019. ‘Crypto Asset Trading in Canada: Entering a New Era of Regulation’. Banking & Finance Law Review 35 (1): 153–85.
1. Shri T Rabi Sankar. n.d. ‘Cryptocurrencies – An Assessment’. Reserve Bank of India. Accessed 2 March 2022. https://rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1196.
1. Zwitter, Andrej, and Jilles Hazenberg. 2020. ‘Decentralized Network Governance: Blockchain Technology and the Future of Regulation’. Frontiers in Blockchain 3. https://www.frontiersin.org/article/10.3389/fbloc.2020.00012.
1. Zwitter, Andrej, and Jilles Hazenberg. 2020. ‘Decentralized Network Governance: Blockchain Technology and the Future of Regulation’. Frontiers in Blockchain 3. https://www.frontiersin.org/article/10.3389/fbloc.2020.00012.